Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:02/19/2015
ATTENDANCE
Time:07:31 AM to 08:25 AM
Becker K.
*
Brown
X
Place:SCR 356
Kefalas
X
Sonnenberg
X
This Meeting was called to order by
Baumgardner
X
Representative Vigil
Vigil
X
This Report was prepared by
Matt Becker
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
School of Mines Two-Year Cash List
Potential Committee Legislation		Two-Year Cash List Approved
Witness Testimony and/or Committee Discussion Only


07:32 AM -- School of Mines Two-Year Cash List

The committee was called to order. A quorum was present. Ms. Kirsten Volpi, Executive Vice President for Finance and Administration, and Mr. Chris Cocallas, University Architect, both representing Colorado School of Mines, came to the table to discuss the university's two-year projection of cash need. Committee members received a summary of three projects listed on the two-year list, prepared by Legislative Council Staff (Attachment A). Ms. Volpi discussed the three projects on the two-year projection of cash need, including the Student Center Renovation Phase I, the General Research Laboratory Annex, and the Traditional Dormitories Renovation projects. In response to a committee question regarding student fees, Ms. Volpi discussed the use of existing student fees for the Student Center Renovation project. Ms. Volpi also discussed the school's use of the Higher Education Revenue Bond Intercept Program.

150219 AttachA.pdf150219 AttachA.pdf
BILL:School of Mines Two-Year Cash List
TIME: 07:41:01 AM
MOVED:Baumgardner
MOTION:Approve the projects listed on the Colorado School of Mines two-year projection of cash need.
SECONDED:
VOTE
Becker K.
Yes
Brown
Yes
Kefalas
Yes
Sonnenberg
Yes
Baumgardner
Yes
Vigil
Yes
Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

07:42 AM -- Potential Committee Legislation

Mr. Jon Forbes, Deputy State Treasurer, and Ms. Esther van Mourik, Office of Legislative Legal Services, came to the table to discuss potential committee legislation regarding the use of certificates of participation (COPs) to refinance bonds issued on behalf of the Grand Junction Colorado Bureau of Investigation (CBI) Lab. Committee members received a draft of the potential legislation (Attachment B) and a graphic handout of the refinance provided by Mr. Forbes (Attachment C). Mr. Forbes discussed the proposed legislation and how it has an approximate present value savings of 10 percent. In response to a committee question regarding administrative, monitoring, and closing costs, Mr. Forbes stated that these costs are currently estimated at approximately $200,000. Discussion ensued on the financial aspects of the refinance transaction. Ms. Kori Donaldson, Legislative Council Staff, discussed the current CBI lease payment and its inclusion in the annual Long Bill.

150219 AttachB.pdf150219 AttachB.pdf150219 AttachC.pdf150219 AttachC.pdf

07:56 AM

In response to a committee question regarding municipal bond insurance, Mr. Forbes discussed the difficulty of securing municipal bond insurance since the economic recession of 2008. He also discussed the original 2006 bond issuance. Ms. van Mourik discussed the statute that allows these types of transactions, and the use of COPs by the state. Ms. Donaldson also discussed the committee's involvement with the original 2006 financing and Legislative Council Staff research products related to COPs.


08:07 AM

Ms. van Mourik discussed potential legislation related to creating a depreciation account within the Capital Construction Fund for the Department of Human Services' Regional Centers. Committee members received a draft of the potential legislation (Attachment D). In response to a committee question regarding the payments received by the Department of Health Care Policy and Financing (HCPF), Ms. Donaldson and Ms. van Mourik discussed the past use of the depreciation monies. Discussion ensued. Ms. Donaldson discussed the related supplemental request referred to the Capital Development Committee by the Joint Budget Committee (JBC) for the Heat Detection Fire Alarm Systems, Regional Centers project. The committee requested more detailed information on the proposed legislation from JBC staff.

150219 AttachD.pdf150219 AttachD.pdf

08:20 AM

Ms. van Mourik discussed the need for committee members to discuss draft legislation regarding a change to Joint Rule 45 with House and Senate leadership.

08:25 AM

The committee adjourned.